According to Deep Tide TechFlow news, on July 20, citing the Wall Street Journal, informed sources said that U.S. Treasury Secretary Bessent privately advised Trump in recent days not to attempt to remove Federal Reserve Chairman Powell. Bessent's reasoning mainly focused on several themes: the potential impact on the economy and the market, the prospect of the Federal Reserve possibly cutting rates later this year, and the political and legal obstacles that such a move might face.
Bessent believes that firing Powell is unnecessary because the economy is performing well, the market is responding positively to the president’s policies, and Federal Reserve officials have already signaled that they may cut rates twice before the end of the year. If he is fired before Powell's term ends, Powell may file a lawsuit, which could drag into next spring, coinciding with the end of Powell's term.
Bessent also noted that the term of Governor Kugler will end in January next year, and Powell's term will end in May, which will give Trump one or two vacancies to fill early next year. Bessent's cautious attitude contrasts with some other government officials who are considering more aggressive strategies. Trump told reporters on Tuesday that he finds Bessent 'reassuring.'